Deposits on long term leases.

I start off by taking deposits.

So this is the farmers' deposits.

So that's 10 million of deposits.

We said, we'll take deposits, but we realize that most of the deposits just sit there.

( Jane deposits coin ) Sergeant, it's Jane Washburn.

Then I have 300 of gold deposits.

And then I might take some deposits.

Because what are my total demand deposits?

I have 300 in total demand deposits.

So let's just say I take another 100 gold pieces in deposits, 100 gold pieces of actual deposits.

These are deposits that I owe to people.

She deposits 10,000 yen in the bank every month.

Rich mineral deposits have been discovered recently in Afghanistan.

Deposits equal liabilities from a bank's point of view.

They found enormous deposits of oil, natural gas and coal.

It's the savings accounts versus the debit accounts with no deposits.

Mountain ranges, plate tectonics, moves the continents around, forms ore deposits.

Or how much you have on demand deposits in a bank?

And these are mineral deposits that are also made by bacteria.

I could have up to 3,000 gold pieces of demand deposits.

I'll just say demand deposits, I won't worry it's demand deposits plus bank notes, but we'll keep it simple right now, I think you get the idea

Many use destructive mountaintop removal to reach coal deposits, causing environmental mayhem.

I assume that everyone always deposits their gold with Bank of Sal.

And actually all of my liabilities at this point are demand deposits.

So what am I going to do with this 10 million of deposits?

They put it back in my bank. Now I get 900 gold pieces of deposits.

Well, I could keep making loans until I have 3,000 gold pieces of demand deposits.

Tell me, what will man do when the forests disappear, and the coal deposits are exhausted?

And so let's see how much do I have outstanding right now in terms of demand deposits?

liabilities here would have also been the deposits of the people who keep their money at the bank.

How much was in Stewart's checking account after the second deposit, so after both of these deposits right over here?

They only need one tenth of the workforce for the same level of customer deposits, in comparison to conventional banks.

And a lot of licit banks were also happy to accept deposits from very dubious sources without questions being asked.

So once again, I say, well, these are demand deposits, which means that these farmers could demand them at any time.

100 from actual deposits, 200 that I actually put in ahead of time to start up my bank, that was my own gold

Multiply so we get 10 of the demand deposits have to equal 300 or divide both sides by 0.1 and then you say, well,

So the Easter Bunny has put things in the ocean floor, and you have massive heavy metal deposits that we're making in this mountain range.

Maybe in a future video, I'll do it with multiple banks, just to show you that all the deposits don't have to go to one place.

While long term credit banks are authorized by law to issue bonds to raise fund, they are not allowed to take deposits the way ordinary banks are.

So my question is, if these are all the deposits I have, or these are all of the reserves I have, how much can I lend out.

Even if it were able to offload these loans, it still does not have enough money to satisfy all of the demand deposits or all of the liabilities.

So the ratio of my reserves, 300, to my demand deposits, which is this part right here, which is essentially all of my liabilities right now, is 10 .

So what happens all across America, Canada, and South America, there are beautiful monazite deposits that have heavy rare earths which could be very commercial except for the thorium content.

And what these layers that's what the surface used to be a million years ago, 10 million years ago, 100 million years ago, and you get deposits on top of them.